Wages Query

Yazi
Yazi Registered Posts: 222 Dedicated contributor 🦉
edited June 18 in AAT student discussion
Scenario :

Member of staff went for Jury Duty. They received payment from court - so this was deducted by payroll dept from the nett wages.
So for the journals I have the debits to p&l various departments and the credits to wages control account and paye control account.
Problem is my journals are out by the amount taken off nett wages.

I need to put a credit for this amount somewhere but not sure where..

Can anyone help please?
Thanks in advance.

Comments

  • toshi
    toshi Registered Posts: 27 Regular contributor ⭐
    hi Yaz


    Have you got a credit balance on you wages control account (balance sheet account)??
    Did you charge full month cost to the P & L for these staff who did Jury duty?

    If the answer is yes to the above - you need to reduce the cost in P & L - Credit entry and Debit entry in wages Control. Wages control should be alway nil.

    Let say every month your net wages cost is £50000,

    1. Cr bank £50000
    2. Dr Wages control £50000
    3.Cr wages control £50000
    4 Dr P & L £50000l


    But - staff did Jury Duty - total bank payment is £40000 ( you will charge less in you P & L)



    1. Cr bank £40000
    2 Dr wages control 40000
    3.Cr wages control £50000 (normal monthly cost)
    4. Dr P & L £50000

    leaving an credit balance of £10000



    5. Dr wages control £10000
    6. Cr P & L £10000 -



    I hope this helps?
  • Yazi
    Yazi Registered Posts: 222 Dedicated contributor 🦉
    Hi

    Thanks for your helpful reply.

    I credited the difference to a P&L Sundry account to make things balance, but have been since told that the wages dept should have reduced the Gross pay so that the nett pay would be the same as the amount of payment by the court, rather than just reducing the nett pay. So this will need adjusting so that the Gross Wages are reflected correctly.

    Yas

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